The activist investor Palliser is pressuring Rio Tinto plc Sponsored ADR (RIO.US) to call for the cancellation of its dual listing structure.

On Monday, the activist investor Palliser Capital wrote to the board of directors of Rio Tinto plc Sponsored ADR (RIO.US), urging them to take further steps to unify the dual listing structure. Previously, a valuation report commissioned by Palliser supported their view that Rio Tinto plc Sponsored ADR should abandon its primary listing in London and unify the company structure as an Australian registered company. Palliser stated that a report by Grant Thornton highlighted the price differences of Rio Tinto plc Sponsored ADR listed in the UK and Australia, which limited the company's ability to execute major stock acquisitions and complicated equity financing. This supported the hedge fund's argument that Rio Tinto plc Sponsored ADR's refusal to unify its listing structure was wrong and urged shareholders to vote against the resolution. Rio Tinto plc Sponsored ADR stated that a review conducted last year found that its dual listing company structure remains effective and beneficial for the company and shareholders. The conclusions of the report were released before Rio Tinto plc Sponsored ADR shareholders voted on Palliser's resolution, which calls for an independent review of its listing status; shareholders listed in the UK will vote on April 3, while shareholders listed in Australia will vote on May 1. It is known that competitor BHP Group Ltd Sponsored American Depositary Receipt Repr 2 Shs (BHP.US) cancelled its dual listing structure in 2022 under pressure from activist investors and now primarily listed in Australia.